What Is the EAR If a Bank Charges You an APR

question 106

Multiple Choice

What is the EAR if a bank charges you an APR of 7.65 percent, compounded quarterly? 

• A) 7.91 percent 
• B) 8.38 percent 
• C) 8.02 percent 
• D) 7.87 percent 
• E) 8.11 percent 

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Definitions:

American Opportunity Tax

A credit offered to first four years of higher education expenses, providing a tax break to defray the costs of tuition and related expenses.

Education Expenses

Costs associated with education, such as tuition fees, textbooks, and other school-related expenses, which may be eligible for tax deductions or credits.

Elderly

A categorical term used to describe individuals who are advanced in age, typically those who are aged 65 or older.

Taxpayer's Base

The foundation of assets or amounts from which a taxpayer can deduct losses or upon which taxes are assessed.